Explanation:
The journal entry is shown below:
Depreciation Expense A/c Dr $1,856
To Accumulated Depreciation - Machinery A/c $1,856
(Being depreciation expense is recorded)
The depreciation expense is calculated for eight months (January - August)
The calculation is shown below:
= $2,784 × 8 months ÷ 12 months
= $1,856
Answer: A. Incremental revenues will exceed incremental costs by $400
Explanation:
First let us start by calculting the incremental revenue from the special order,
Incremental revenue from special order = Incremental Revenue per unit x no. of units
=200*$85
= $17,000
Then we need to calculate the incremental cost of the special order which would include all the costs,
Incremental cost on special order = Direct materials + Direct labor + Variable overhead + Additional labor cost for monogram + Purchase of equipment for monogram
= (200*$23) + (200*$45) + (200*$7) + (200*$4) + $800
= $16,600
Finally we will then subtract the Incremental cost from revenue,
=17,000 - 16,600
=$400
<em>Incremental Costs increased by $400 so Option A is correct.</em>
Answer:
loan interest revenue for 2020 is $720
loan interest revenue for 2021 is $240
Explanation:
The loan interest revenue in the year 2020 is for 9 months out of the total loan tenure of twelve months:
interest revenue for 2020=$16,000*6%*9/12=$720.00
This would be debited to interest receivable and credited to interest revenue account.
interest revenue for 2021=$16,000*6%*3/12=$240.00
Answer:
d. 301,000
Explanation:
Given that the cost per textbook is $27, we know that the addition of variable and fixed Cost gives total cost.
We will multiply variable cost per textbook of $20 with current volume of book sold per year 43,000, which gives a total variable cost of $860,000.
Also, total cost would be 43,000 multiplied with $27 , which is $1,161,000 minus the total variable cost of $860,000 equals $301,000 which is the associated fixed cost.
